Suggestions Before Investment In Gold

When purchasing gold, there are many traps to stay clear of before investing your hard-earned money. I’ve put together a list of the ten best gold investing tips for those who are just beginning their investment and would like to get the maximum value for their money Auctus Metal Portfolios.

1) The first, and what I consider to be the most important thing to do prior to purchasing your gold is to shop around. It may sound obvious but there are a lot of new investors who become excited about purchasing gold and they settle for the first site they come across online. Do your research before buying because this could result in thousands of dollars if commit a mistake.

2) Don’t buy numismatic gold coins unless you’re an avid collector. Numismatic coins are collector’s items and come with a substantial cost over the spot cost of the gold. Numismatics can include very scarce coins, coins that are graded, shipwreck coins, etc. Remember, you’re investing in the commodity (gold) therefore you need the most gold for the dollars.

3) Make sure you buy bullion coin and bullion bars. Gold bullion is basically gold that is manufactured in mass quantities. It is 99.9% pure gold and comes as government minted coins, rounds, ingots, and bars. You should buy gold bullion since the cost of its purchase over the spot price is negligible. For example, the prices for gold are currently about $1100/ounce. If you wanted to purchase a numismatic gold coin it would cost between $1,500 and $100,000 for a single coin. The bullion coins like one like the American Gold Eagle might be $35 more than the price of spot. A much better deal.

4) Examine the various Gold bullion products. Usually gold bullion that is created by government mints, such as Perth, Australia mint or the Perth, Australia mint or U.S. mint carry a greater value than gold rounds. Gold rounds cannot be considered coins because they are not legal tender. They don’t come with a face price on them , like a U.S. gold coin does. They’re generally less expensive to purchase.

5.) Beware of fool’s gold. “Fools gold” is a term that is used by many to refer to the gold ETFs (Exchange Traded Funds). GLD is one of the funds that can be invested in through your broker. The issue in these ETFs is they do not actually hold the gold you’re investing in. The ETFs are derivatives and you are only getting exposure in the value of gold. The GLD is generally believed that they do not possess the amount of gold they claim to have since they do not permit a third party audit of the stored gold.

6) Beware of gold futures contracts traded by the COMEX (Commodities Exchange). These are simply futures contracts that allow you to purchase 100 ounces of silver per contract. When the future date arrives and the gold price is higher the contract is a win. The COMEX is also in the spotlight for being accused of defaulting on the gold delivery to its customers. People are also claiming the COMEX is using cash settlements instead of physical delivery. COMEX is using cash settlements in place of physical delivery of the gold to customers. Technically, this is considered to be a default.

7.) You should diversify your possessions. Just like any investment portfolio you need to purchase different kinds of gold. Don’t put all of your funds into American Gold Eagles. It’s good to diversify since you don’t think about which coins may carry a much higher premium in the event of selling them.

8) Buy different denominations of gold coins. You can purchase most precious metals in 1/10 ounce quarter ounce, 1/2 one ounce and even 1 ounce. There are coins that are made in 10 oz and higher. It is important to keep in mind that smaller coins are subject to more value due to the fact that it took longer and more energy to mint.

9) Beware of putting your gold into the bank’s lock boxes. It’s best to find a safe place to store your gold in a safe place which no one else can see than to trust that banks will let you take your gold in the event of a bank run. Another option is a robust safe that is attached onto the floor.

10) Never tell anyone that you are taking a position in the gold market. If the price of gold is soaring that is what economists anticipate to take place sooner rather than later you must ensure that your investment remains secret to potential thieves.

This is not an exhaustive list of gold investment tips However, it may be of help to you who are just beginning to learn about gold investment.

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